Gold and silver prices plunged to their four-week lows led by a sell-off across the globe.
Gold futures fell 1.3% or Rs 600 to Rs 46,029 per 10 gram. Similarly, silver dived 1.6% down to Rs 63,983 per kg. These are the levels last seen in April.
The street estimates a sooner-than-expected hike in interest rates by the FED amid robust US jobs data. Equity markets touching new highs and a spike in the US treasury bond yields may have also led to investors booking profits on bullion.
The fifth tranche of the sovereign gold bond scheme has also opened for subscription today. The issue price of the gold bond during the five-day subscription period shall be ₹4,790 per gram. Along with price appreciation of gold, the sovereign bonds scheme also offers 2.5% assured returns per year.
Who and how much can you invest?
The minimum permissible investment is 1 gram of gold. The maximum limit of subscription is 4 kg for individuals, 4 kg for Hindu Undivided Family (HUF) and 20 kg for trusts and similar entities per fiscal (April-March).
How can you invest?
The sovereign gold bonds are sold through banks, designated post offices, recognised stock exchanges - Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), and the Stock Holding Corporation of India Limited. Gold bonds are held in Demat form.
Push for digital subscription
The government, in consultation with the Reserve Bank of India (RBI), also provides a discount of Rs 50 per gram to those investors applying online and the payment against the application is made through digital mode.